AB 1734 Guidance: Identical Ownership of Beer Manufacturer and Winegrower Licenses for a Single Premises

Pursuant to AB 1734 (Bennett, Chapter 175, Statutes of 2022), ABC licensees who hold a beer manufacturer’s license and a winegrower’s license that are under identical ownership will be authorized beginning January 1, 2023 to hold both licenses for a single premises where alcoholic beverages allowed under those license types may, without separation, be sold or consumed. The licensee must still have a designated area on the premises where retail sales or consumption occurs but is not required to separate beer and wine sales or beer and wine consumption.

In order to exercise the privileges established by the bill, both licenses must be maintained under identical ownership. Identical ownership means the entity listed on the licenses must be identical in all respects, and not just the same individuals in control of both licenses. Further, a manufacturer’s licenses for the single premises must either both be master licenses or branch offices and may not be a combination of a master license and a branch office. If the premises involves overlapping branch offices, alcoholic beverage sales are limited only to those produced by the licensee.

There are distinct privileges that vary between beer and wine manufacturers. This new law does not enable a licensee to bypass statutory or regulatory requirements or restrictions applicable to their beer manufacturer or winegrower license simply by overlapping the premises with the other type of manufacturer’s license. For example, limits applicable to the number of bona fide eating places a winery may operate remain applicable. As expressly provided in the bill, it is not intended to allow a licensee to exercise any license privileges, or to hold licenses alone or in combination, not otherwise authorized by the ABC Act.